MutualFundWire.com: Another Fund Firm Banks on the Active ETF Business
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Monday, June 21, 2010
Another Fund Firm Banks on the Active ETF Business
Huntington Asset Advisors is preparing to launch its own active ETFs. On Thursday the Columbus, Ohio-based asset manager filed to launch the Huntington Ecological Strategy Fund and the Huntington Global Rotating Strategy Fund in the first quarter of next year.
"They combine Huntington's asset management expertise with the advantages of ETFs," stated Randy Bateman, president and chief investment officer.
Huntington Asset Advisors is the investment advisory unit of Huntington Bank.
Company Press Release
COLUMBUS, Ohio June 21-- Huntington Asset Advisors Inc., an investment advisory arm of Huntington Bank (Nasdaq: HBAN; www.huntington.com) has filed with the Securities and Exchange Commission (SEC), to establish and offer two actively managed Exchange-Traded Funds (ETF).
Similar to a mutual fund, an ETF allows investors to purchase shares in a fund representing a range of publicly offered investments. ETFs hold assets such as stocks and bonds and their market price per share may be less, more, or equal to the net asset value of their underlying assets.
"ETFs have some distinct benefits for investors," said Randy Bateman, president and chief investment officer of Huntington Asset Advisors, which also manages the Huntington Funds. "The primary benefits of ETFs include the opportunity for intraday trading similar to a stock, possible tax benefits resulting from potentially lower annual capital gains distributions, and generally lower fees."
The initial actively managed exchange traded funds – the Huntington Ecological Strategy Fund and the Huntington Global Rotating Strategy Fund – are expected to launch first quarter of 2011.
"The Ecological Strategy Fund will hold stocks aligned to one or more environmental themes that also screen out as superior investments," added Bateman. "The Global Rotating Strategy Fund will shift holdings among equity market segments, such as large-cap and mid-cap and within industry sectors as well, offering the greatest potential for capital appreciation. As actively managed ETFs they combine Huntington's asset management expertise with the advantages of ETFs."
Daniel B. Benhase, Huntington senior executive vice president, added, "Initially ETFs offered investments tied to indexes such as the S&P 500, but recently the SEC has approved a broader range of investment options that investors have found attractive. To meet the needs of our investors, Huntington is offering unique products like the Ecological Strategy and Global Rotating funds that leverage the benefits of ETFs."
A registration statement for the funds will be filed with the Securities and Exchange Commission and shares of the funds may not be sold until the registration statement, which includes the fund's prospectus and statement of additional information, becomes finalized and effective. You should carefully consider the investment objectives, potential risks, management fees, and charges and expenses of the funds before investing. The funds' prospectus will contain this and other information about the funds, and should be read carefully before investing.
Not A Deposit - Not FDIC Insured - May Lose Value - No Bank Guarantee - Not Insured By Any Government Agency
About Huntington
Huntington Bancshares Incorporated is a $52 billion regional bank holding company headquartered in Columbus, Ohio. Through its affiliated companies, Huntington has been providing a full range of financial services including checking, loans, savings, insurance and investment services to customers for 144 years. Huntington has more than 600 banking offices. Huntington also offers retail and commercial financial services online at huntington.com; through its telephone bank; and through its network of over 1,300 ATMs.
SOURCE Huntington Bancshares Incorporated
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